Since last week’s big sell-off, stocks have been almost literally up one day, down the next, and so on and so on.
As of last Thursday, the Dow Jones Industrial Average and the S&P 500 had both lost more than 6% from their early October all-time highs, while the Nasdaq Composite index had slid nearly 10% from its late August record peak—almost in correction territory.
Stocks bounced back Friday, sold off again Monday, rallied big time on Tuesday, and stayed there Wednesday before plunging again Thursday and closing mixed on Friday, with the Dow up and the S&P closing lower for the tenth time in the last 12 trading days. After all the ups and downs and to-ing and fro-ing, all three indexes are slightly above last Thursday’s lows.
The putative cause for last week’s selloff: rising ten-year Treasury yields, which topped out at 3.23% on October 8th. (The closing yield Friday was back to 3.20%.) This week, well, just blame the Fed.